hygv

Fixed Income

Income Generation

FlexShares High Yield Value-Scored Bond Index Fund

For investors seeking income diversification while focusing on value and quality issuers.

The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust High Yield Value-Scored US Corporate Bond Index (the Underlying Index).

$40.84 (-0.40%)

$40.58

0.37%

$49.49/$38.43

OBJECTIVE AND STRATEGY

1:34

Transcript
Northern Trust High Yield Value-Scored US Corporate Bond Index

Diagraming the index process

Multi-Factor Approach to High Yield

In depth discussion of the index and fund process

INDEX

The Northern Trust High Yield Value-Scored US Corporate Bond Index is designed to measure the performance of a diversified universe of high yield, US-dollar denominated bonds of companies exhibiting favorable fundamental qualities, market valuations and liquidity, as defined by Northern Trust Investments, Inc.'s ("NTI") proprietary scoring models.

Index Methodology

Investing in both actively and passively managed funds involves risk and principal loss is possible. Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Actively managed funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.

FlexShares High Yield Value-Scored Bond Index Fund (HYGV) invests in high yield securities, which are considered highly speculative, and is subject to greater credit risk, price volatility and risk of loss than if it invested primarily in investment grade securities.

There is a higher risk that an issuer will be unable to meet principal and interest rate payments on an obligation and may also be subject to more substantial price volatility due to such factors as interest rate sensitivity, market perception of credit worthiness of and general market liquidity than if the fund invested in investment grade securities.

The fund may invest in distressed securities, which generally exposes the fund to risks in addition to investing in non-investment grade securities. These risks can adversely impact the Fund’s return and net asset value. When interest rates rise, the value of corporate debt can be expected to decline. The value of the securities in the Fund’s portfolio may fluctuate, sometimes rapidly and unpredictably at a greater level than the overall market.

The Fund may invest in derivative instruments. Changes in the value of the derivative may not correlate with the underlying asset, rate or index and the Fund could lose more than the principal amount invested.

The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

The fund is also subject to the risk that the Fund’s investment in companies whose securities are believed to be undervalued will not appreciate in value as anticipated.

The Northern Trust High Yield Value-Scored US Corporate Bond Index is the intellectual property (including registered trademarks) of Northern Trust and/or its licensors ("Licensors"), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by Northern Trust and its Licensors and neither of the Licensors shall have any liability with respect thereto.

 

All data provided by: Northern Trust, J.P. Morgan, Refinitiv and Morningstar.